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September/October 1997, 
Vol. 79, No. 5
Posted 1997-09-01

The Business Cycle and Chain-Weighted GDP: Has Our Perspective Changed?

by Michael R. Pakko

Our perspective on the U.S. economy’s recent performance has been challenged recently by changes in the methodology used to adjust the National Income and Product Accounts for inflation. The author surveys the changes embodied in the revised data, examining the question of whether or not the revisions alter our view of the overall pattern of economic fluctuations known collectively as the business cycle.